Samsung Electro-Mechanics to Invest KRW 4.27 Trillion to Expand Packaging Substrate Capacity in South Korea

en.Wedoany.com Reported - On September 28, Samsung Electro-Mechanics announced an investment of KRW 4.27 trillion to expand the packaging substrate production facilities at its Sejong plant in South Korea, in order to expand production capacity for high-performance semiconductor packaging substrates. The investment period runs from September 28, 2026 to May 31, 2028, and the investment amount is equivalent to 43.6% of the company's share capital based on its consolidated financial statements at the end of 2025. The company stated that the actual investment scale and implementation period may be adjusted according to the progress of the project.

This capacity expansion continues Samsung Electro-Mechanics' previously announced mid- to long-term investment direction for high-performance packaging substrates. In July of this year, the company disclosed plans to build Sejong into a global manufacturing base for high-performance packaging substrates, with a focus on expanding production capacity for packaging substrates used in AI servers, while also investing in core process R&D and technical talent development. The mid- to long-term planned investment scale for the Sejong base is approximately KRW 8 trillion.

Samsung Electro-Mechanics is currently focusing its packaging substrate business on expanding into high-value-added areas such as AI accelerators, server CPUs, and automotive electronics. In the second quarter of 2026, the company's packaging solutions business recorded sales of KRW 771.6 billion, a year-on-year increase of 37%, mainly driven by growing demand for high-end packaging substrates related to AI accelerators, server CPUs, and autonomous driving from major global technology companies. The company also stated that it will expand mass production of high-performance substrates for next-generation AI accelerators and server CPUs.

As AI data center construction and high-performance computing demand continue to increase, advanced packaging substrates such as FCBGA are placing higher requirements on size, layer count, wiring density, and heat dissipation performance. Samsung Electro-Mechanics has previously positioned Sejong as a core production base for high-performance packaging substrates for AI servers. This KRW 4.27 trillion expansion will further increase the manufacturing capacity of the base and form a complementary layout with its high-performance substrate and high-end MLCC operations in Busan